Honeywell International (HON) Financials

Honeywell International Inc. (NASDAQ: HON) has shown solid financial performance over the last several years, with steady revenue growth, strong profitability, and efficient capital management. Here is a summary of key trends observed from the Q2 2022 to Q2 2025 financial statements:

• Revenue Growth: Operating revenue increased from approximately $8.9 billion in Q1 2023 to $10.35 billion in Q2 2025, indicating consistent top-line growth.
• Net Income Growth: Consolidated net income rose from about $1.4 billion in Q1 2023 to $1.57 billion in Q2 2025, showing profitability improvements over time.
• Improving Earnings Per Share (EPS): Diluted EPS increased from $2.07 in Q1 2023 to $2.45 in Q2 2025, reflecting efficient earnings growth relative to share count.
• Strong Operating Cash Flow: Net cash from operating activities remained robust, exceeding $1.3 billion in Q2 2025, supporting operations and investments.
• Capital Investments: Moderate spending on property, plant, and equipment (around $250-$360 million quarterly) suggests ongoing investment in capacity and technology.
• Significant Acquisitions: Honeywell completed acquisitions worth $2.16 billion in Q2 2025 alone, which may bolster future growth and market position.
• Healthy Cash and Equivalents Position: Cash & equivalents have generally increased or remained strong, reaching over $10.3 billion by Q2 2025, providing liquidity flexibility.
• Debt Levels Fluctuating: Long-term debt increased notably, from about $14.7 billion in Q1 2023 to $30.2 billion by Q2 2025, likely driven by acquisitions and financing activities.
• Share Repurchases and Dividends: The company has been actively repurchasing common equity and paying dividends, returning value to shareholders but also reducing equity base.
• Net Cash Outflows in Investing Activities: Significant negative cash flow from investing due to acquisitions and investments (e.g., -$1.5 billion in Q2 2025), which might pressure cash flow if not balanced by operational cash.

Detailed Observations:

• Honeywell sustained gross profit margins of around 38-40%, with strong management of cost of goods sold relative to revenue.
• Operating expenses (SG&A and R&D) increased reasonably in line with revenue, supporting growth initiatives without excessive cost inflation.
• Interest expenses rose from approximately $170 million in Q1 2023 to $330 million by Q2 2025, consistent with higher debt levels.
• The company’s net income margin improved slightly, reaching about 15% in recent quarters.
• Cash dividends per share grew modestly from $1.03 in Q1 2023 to $1.13 in Q2 2025, indicating commitment to shareholder returns.
• Equity attributable to common shareholders decreased marginally due to treasury stock increases but remains strong at about $16 billion in Q2 2025.
• The large jump in acquisitions and associated goodwill and intangible assets (growing from about $17.6 billion in early 2023 to $31.6 billion by Q2 2025) could present risk if these assets do not generate expected returns.
• The company’s working capital is solid, with accounts receivable and inventories growing consistently alongside revenues.
• Free cash flow remains generally positive, as operating cash flow typically outweighs capital expenditures.

Summary: Honeywell demonstrates consistent growth in revenue, profitability, and cash generation over the last few years. The company is investing aggressively in acquisitions to drive future expansion and maintaining a strong liquidity position. However, increasing debt and investment-related cash outflows warrant monitoring. Overall, the financial trends suggest Honeywell is in a stable and growth-oriented phase, balancing shareholder returns with strategic investments.